Subscribe to RSSA Ballsy Solution to the Social Security Mess
Two days ago, I was driving my six-year-old to the store, and the subject of her grandparents’ retirement came up. During the conversation, she discovered the concept of Social Security. “You mean you get paid to retire?” she asked, suddenly excited about the possibility. “Well,” I said, “your grandparents get paid. And I might get paid fifty cents on the dollar… but I doubt you will see anything.” “Aww, man… ” The poor girl just discovered the concept of paid retirement and had it taken away, all in an afternoon. This is when it really hit me that we are indeed stealing from our children. Advertisement Triple-Digit Gains in Less than 2 Months Ever since taking advantage of our latest oil report, readers have banked gains of 130% in under six weeks. That was just one of several winning Bakken picks. And the best part? They’re not even close to closing the books on this play. Don’t miss out on our next round of profits. Click here to learn more. We Don’t Need No Water Let the #$@#!@ Burn! As I write this, the Obama Administration is pushing a health care entitlement nobody wants and that we cannot afford. And yet, beneath the fold of most front pages is the disturbing fact that this year — for the first time — Social Security will pay out more than it takes in. In fact according to Investor’s Business Daily , the government will pay out $29 billion more than it takes in through the payroll tax. The good news is that the Social Security trust fund (remember Al Gore’s lockbox?) has been funded to the tune of $2.5 trillion in anticipation of this event. The bad news is that according to the AP, those are only paper assets. It turns out Congress spent the money on other programs. The IBD says, “Social Security’s unfunded liability for future decades now stands at $17.5 trillion, an inconceivable amount of money.” That is quite a hole. Perhaps the leaders of this country should do what they always do and simply issue more government debt? U.S. Credit is Maxed Out Moody’s, the world famous rating agency best known for closing the barn door with self-assured tardiness while in the pay of the horse, said that the United States, Great Britain, Germany, and France had a one-way ticket to debtors’ prison. The Ca-rated Moody’s went on: … debt levels in the four large credit-worthy economies had reached the point at which they are at risk of being downgraded — a step that would drive up interest rates, increase borrowing costs and mark a turn in perceptions about the world economy… growth alone will not resolve an increasingly complicated debt equation. Preserving debt affordability at levels consistent with AAA ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion. Social cohesion? I think that’s economist speak …
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A Ballsy Solution to the Social Security Mess
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